Interim Results - Part One

WPP Group PLC
14 August 2000


PART ONE

                            
                           WPP
                  2000 INTERIM RESULTS
                            
         Revenue up almost 19% to £1.209 billion
 Profit before tax up over 22% to £137.7 million against
                     £112.6 million
Diluted earnings per share up over 22% to 12.0p from 9.8p
   Interim ordinary dividend up 20% to 1.2p per share


-   Revenue up almost 19% to £1.209 billion and up
    almost 18% in constant currencies

-   Profit before interest and tax up almost 25% to
    £160.7 million and up over 25% in constant
    currencies

-   Operating margin up 0.6 margin points and 0.7 margin
    points in constant currencies in line with
    objectives

-   Profit before tax up over 22% to £137.7 million and
    up over 23% in constant currencies

-   Diluted earnings per share up over 22% to 12.0p from
    9.8p and up over 23% in constant currencies

-   Interim ordinary dividend up 20% to 1.2p per share

-   Net new business billings of over £1.1 billion ($1.7
    billion) up 13% over £1.0 billion ($1.5 billion) in
    comparable period

-   Before exceptional operating costs pro-forma
    revenues of WPP including Young & Rubicam Inc up
    over 19%, operating profit up almost 28% and
    operating margin up 0.8 margin points in constant
    currencies


Summary of Results

The Board of WPP Group plc announces its results for the
six months ended 30 June 2000, which show significant
continued improvement.

Turnover was up 27% to £5.7 billion in the first six
months of 2000.

Reportable revenue was up almost 19% at £1.209 billion.
On a constant currency basis revenue was up almost 18%.
Excluding acquisitions constant currency revenue was up
over 15%.

Profit before interest and tax was up almost 25% to
£160.7 million from £128.9 million and up over 25% in
constant currencies.

Reported operating margins rose by 0.6 margin points to
13.3% from 12.7% in line with the Group's financial
objectives.  In constant currencies the operating margin
grew by 0.7 margin points.  Reported operating costs rose
by over 18% and rose by over 17% in constant currencies.

The Group's staff cost to gross margin ratio excluding
variable compensation fell to 55.9% from 56.4%.  On a
like-for-like basis the average number of people in the
Group was 30,601 in the first half of the year, compared
to 28,719 in 1999, an increase of 6.6%.  The total number
of people in the Group at the half year end was 31,416
against 27,334 in 1999.

Net interest payable and similar charges increased to
£23.0 million from £16.3 million, reflecting improved
profitability more than offset by the impact of increased
interest rates, share repurchases and acquisitions.

Reported profit before tax rose by over 22% to £137.7
million from £112.6 million. In constant currency pre-tax
profits rose by over 23%.

The tax rate on profit on ordinary activities fell to 30%
from 31% last year.

Diluted earnings per share were up over 22% at 12.0p, and
were up over 23% in constant currencies.

The Board recommends an increase of 20% in the interim
ordinary dividend to 1.2p per share.  The record date for
this interim dividend is 15 September 2000, payable on 20
November 2000.

Further details of WPP's financial performance are
provided in Appendix I (in sterling) and Appendix II (in
euros).


Merger with Young & Rubicam Inc ('Y&R')

On 11 May, 2000 it was announced that the Boards of WPP
and Y&R had reached agreement to merge by means of an all-
share offer by WPP for Y&R.  The terms were 0.835 WPP
American Depositary shares or 4.175 WPP ordinary shares
for every Y&R share.

WPP's offer valued Y&R at £3.1 billion ($4.7 billion) on
the day of the announcement.  The Hart-Scott-Rodino
waiting period has expired without request for further
information and listing particulars, notice of the
necessary WPP Extraordinary General Meeting and proxy
documents will be dispatched to WPP and Y&R share owners
in due course.  It is anticipated that both sets of share
owners will vote on the transaction towards the end of
September with closing shortly thereafter.

Before UK GAAP exceptional operating costs in connection
with the issue of treasury stock by Y&R, pro-forma
revenues for the combined Group in the first half of 2000
rose by over 19% on a constant currency basis, operating
profit up almost 28% and pre-tax profits up 25%.
Operating margins rose by 0.8 margin points to 13.2% and
staff costs to gross margin excluding variable
compensation fell by 0.5 margin points to 56.6% from
57.1%.  The total number of people in the combined Group,
excluding associates, totalled 47,932 at June 30, 2000.
Further pro-forma information is provided in Appendix
III.

Review of Operations

Revenue by Region

The pattern of revenue growth differed regionally.  The
table below gives details of the proportion of revenue
and revenue growth (on a constant currency basis) by
region for the first six months of 2000.

Region                Revenue as a %        Revenue
                      of total Group        growth%
                                              00/99
                                                   
North America                   45.8           18.5
United Kingdom                  19.4           10.8
Continental Europe              18.1           19.8
Asia Pacific, Latin             16.7           23.7
America, Africa &
Middle East
                                 ___            ___
TOTAL GROUP                      100           17.9
                                 ___           ____
                                                     

As can be seen, North America, UK and Continental Europe
continued to grow strongly.  Strong recovery continued in
Asia Pacific and Latin America.

Net new business billings of almost £1.1 billion ($1.7
billion) were won in the first half of the year, 13% up
on £1.0 billion ($1.5 billion) in the comparable period
last year.

Including Y&R, on the same basis and for the same period,
the proportion of revenue and revenue growth by region
was as follows:

Region                 Revenue as a %       Revenue
                       of total Group       growth%
                                              00/99
                                                   
North America                    48.9          17.6
United Kingdom                   16.0          12.8
Continental Europe               19.5          18.7
Asia Pacific,                    15.6          34.6
Latin America,
Africa & Middle
East
                                  ___           ___
TOTAL ENLARGED GROUP              100          19.2
                                  ___           ___


Revenue by Communications Services Sector and Brand

The pattern of revenue growth varied by communications
services sector and company brand.  The table below gives
details of the proportion of revenue and revenue growth
by communications services sector (on a constant currency
basis) for the first six months of 2000.

Communications           Revenue as a       Revenue
Services             % of total Group       growth%
                                              00/99
                                                   
Advertising and Media            46.0          15.8
Investment Management
Information and Consultancy      19.8          24.4               
Public Relations and Public      10.1         44.3                 
Affairs*
Branding and Identity,           24.1           8.6**
Healthcare and Specialist
Communications
                                  ___           ___
TOTAL GROUP                       100          17.9
                                  ___           ____             
* The revenue figures submitted to the O'Dwyer Report
  reflect some public relations income which is included
  here in advertising and media investment management and
  branding and identity, healthcare and specialist
  communications.  Total public relations and public
  affairs revenues grew almost 40% to $227 million.

**     Gross profit up over 22% on a like-for-like basis.
                                                         

Including Y&R, on the same basis and for the same period,
the proportion of revenue and revenue growth by
communications services sector was as follows:

Communications           Revenue as a    Revenue growth%
Services             % of total Group              00/99

                                                        
Advertising and Media            45.9               16.8
Investment Management
Information and Consultancy      13.2               24.4
Public Relations and Public      13.7               37.0
Affairs
Branding and Identity,           27.2               13.6**
Healthcare and Specialist
Communications
                                  ___                ___
TOTAL ENLARGED GROUP              100               19.2


**     Gross profit up over 22% on a like-for-like basis.

Advertising and Media Investment Management

On a constant currency basis, combined revenue at Ogilvy
(including Cole & Weber and OgilvyOne), J Walter Thompson
Company, Conquest and MindShare rose by almost 22%,
whilst operating margins continued to improve.

Ogilvy, J Walter Thompson Company, Conquest and MindShare
generated net new business billings of £900 million ($1.4
billion), 27% up on that achieved in the first six months
of 1999.

Information and Consultancy

The Group's information and consultancy businesses
continued their growth, with revenues increasing by over
24%, operating profit up over 27% and as a result
improving operating margins.

Public Relations and Public Affairs

The Group's public relations and public affairs revenues
showed significant continued growth, rising over 44%,
with operating margins at almost 16% well beyond previous
objectives. Hill and Knowlton's revenues rose 29% and the
company continued to improve its operating margins
significantly.  Ogilvy Public Relations Worldwide's
revenues rose by almost 85%, also with significant
improvement in its operating margin.
          

Branding and Identity, Healthcare and Specialist
Communications

The Group's branding and identity, healthcare and
specialist communications revenues grew by almost 9% over
last year with gross margin, a more accurate indicator of
top-line growth, up over 22% on a like-for-like basis and
operating margins improving.  Particularly good
performance was registered by several companies in this
sector in the first half, including in promotion and
direct marketing by RTCdirect, Einson Freeman,
Perspectives, OgilvyOne and A Eicoff & Company; in
branding and identity by Enterprise IG, Scott Stern,
Coley Porter Bell and Banner McBride; in healthcare by
Shire Hall Group; and in other specialist marketing
services by The Henley Centre, JWT Specialized
Communications, P.Four Consultancy and Management
Ventures.

Cashflow and Balance Sheet

A summary of the Group's cashflow statement and balance
sheet and notes as at 30 June 2000 are provided in
Appendices I and II.

Improved profitability has continued to have a positive
effect on the Group's balance sheet.  In the first half
of 2000, operating profit was £147 million, depreciation
£25 million, interest paid £22 million, tax paid £32
million and other cash inflows £13 million.  This
resulted in net cash generation of £131 million for the
first six months of 2000, compared to £102 million in the
comparable period last year.  The Group invested £30
million in capital expenditure, £116 million in cash
acquisition payments and investments and £46 million in
share repurchases and dividends, a total outflow of £192
million.

For the twelve months ended 30 June 2000 the net cash
generation was £265 million which was invested in capital
expenditure of £72 million, cash acquisition payments and
investments of £272 million and share repurchases and
dividends of £82 million, a total expenditure of £426
million.  Net debt averaged £325 million for the first
half of 2000 versus £189 million for the same period last
year.  On 30 June 2000 net bank borrowings were £292
million against £52 million on 30 June 1999.

The Board continues to examine ways of deploying its
substantial cashflow of almost £240 million per annum to
enhance share owner value particularly given that
interest cover is almost seven times.  Cashflow and
interest cover will be further improved by the proposed
all-equity acquisition of Y&R.  As necessary capital
expenditure normally approximates to 1-1.2x the
depreciation charge, the Company has concentrated on
examining possible acquisitions or returning excess
capital to share owners in the form of dividends or share
buy-backs.
                                                        

In the first half of 2000, acquisitions have been
completed in advertising and media investment management
in China, Israel, Italy, the Middle East, Netherlands,
Puerto Rico and Spain; in information and consultancy in
Denmark and Sweden; in public relations and public
affairs in Poland and the United States; and in branding
and identity, healthcare and specialist communications -
in branding and identity in Australia, Singapore and the
United States; in direct in Australia, Canada, Poland,
Spain and the United Kingdom; and in interactive in
Canada, Mexico and the United Sates.

In addition to increasing the interim dividend by 20% to
£9.3 million or 1.2p per share, the Company has continued
its rolling share buy-back programme in the first half of
the year by repurchasing 4.8 million shares at an average
price of £9.57 per share and total cost of £46 million.
The Company's objective remains to buy-back approximately
£100 million - £150 million of shares each year,
equivalent to 1-2% of the ordinary share capital.

wpp.com

The new economy continues to have a significant impact on
wpp.com.  Despite the recent correction of stock market
valuations of internet businesses on both sides of the
Atlantic, web revenues continue to grow strongly.   In
particular, traditional brands have increased their
efforts and their expenditure as they come to terms with
the challenges and opportunities offered by the new
technologies.  Work with traditional clients and with
some of their spin-offs continues to provide much of the
growth in our interactive business.  Demand from
traditional clients has allowed us to be selective in
choosing the start-ups we work with and to pick those
that we feel are well funded with a compelling offer.

Narrowly defined web revenues for the half year -
confined to web based work and excluding off-line
expenditure for on-line brands - grew to over $90
million.  This is well above budget and compares
favourably with over $30 million for the same period in
1999.  These figures exclude the operations of companies
such as Syzygy, Concept! and Roundarch in which we own
minority interests. Particularly strong performances were
recorded by OgilvyInteractive, digital@jwt, Research
International and Millward Brown Interactive.  Operating
margins for these businesses are similar to, or better
than, those of WPP as a whole.

Off-line work for internet start-ups and 'clicks and
mortar' operations continued to develop strongly in all
regions.  Particularly strong growth was recorded at
Ogilvy, AlexanderOgilvy, J Walter Thompson Company, Blanc
& Otus and Enterprise IG.  A notable feature has been the
growth of business-to-business clients who now account
for over half of our work in this area.   While there has
been considerable 'churn' amongst start-ups, demand
continues to exceed supply and we have been able to
maintain or increase fee levels.  As we suspected, it is
growing increasingly difficult to isolate web-related revenues given that much
of the work for clients involves the total integration of their web and
traditional activities.  We estimate that these more
broadly defined web revenues - including off-line
spending by on-line brands - have grown by 30% in the
first half of the year to over 15% of total revenues.

We have continued to invest in a range of start-ups in
order to better understand developments and the
capabilities we need to develop and widen the offer we
can make to clients.  Investments in the first half have
been made in Inferentia (Italy's leading e-commerce and
web consulting company), Metapack (in e-fulfilment and
logistics), Advertising.com (a leader in targeting on-
line media), Imagine (e-crm), Intraspect (knowledge
management software), Red Sheriff (web traffic
measurement and the dominant provider in Australia),
Spydre (a Latin American incubator) and BigWords (the US
leader in targeting 18-24 year olds for content and e-
commerce).

In addition, a number of acquisitions have been made of
companies with strong technology and web capabilities to
strengthen our core operating brands.

Client Developments in the First Half of 2000

At the end of the half year, the Group worked with over
60 major national or multi-national clients in three or
more functions.  This reflects the increasing
opportunities for co-ordination between activities both
nationally and internationally.  The Group also works
with well over 100 clients in 6 or more countries.  The
Group now serves more than 300 of the Fortune 500 and
approximately half of the NASDAQ 100.  Including
associates the Group currently employs over 39,000 people
in 950 offices in 92 countries.

The Group estimates that more than 20% of new assignments
in the first half of the year were generated through the
joint development of opportunities by two or more Group
companies.

Current Progress and Future Prospects

The Group's performance has continued to improve in the
first half of 2000.

The Company is firing on all cylinders, gaining market
share in all geographic regions including the United
States, United Kingdom, Continental Europe, Asia Pacific
and Latin America.

Functionally, advertising and media investment management
have accelerated their top-line growth rates, whilst
continuing to improve their operating profits and
margins.  Information and consultancy, public relations
and public affairs, branding and identity, healthcare and
specialist communications have continued to improve
operating profits and operating margins at higher levels
of revenue and gross margin growth.

Underlying revenue trends are sound with the Group
growing faster than the market and therefore increasing
market share.  Prospects for the latter half of 2000 look
equally good (early indications are that July revenues
are up over 20% on a constant currency basis) and
industry projections for advertising market growth in
2001 look only slightly lower than 2000 in the range of 5-
6%.  Marketing services expenditures will continue to
grow at a faster rate.  Continual concerns about stock
market valuations and economic over-heating on both sides
of the Atlantic are balanced by the focus of governments
on fiscal restraint and the independence of central banks
in controlling interest rate policies.

Although market conditions are good, plans, budgets and
forecasts of revenues will continue to be made on a
conservative basis and considerable attention is still
being focused on achieving margin and staff cost to
revenue or gross margin targets.  Continued progress is
being made in these areas.  For example, on a comparable
basis, the combined operating margins of Ogilvy, J Walter
Thompson Company and MindShare rose to 15.6% from 14.6%
in the first half of 2000 compared to the same period in
1999.

In addition to influencing absolute levels of cost, the
initiatives taken by the parent company in the areas of
human resources, property, procurement, information
technology and practice development continue to improve
the flexibility of the Group's cost base.

This will become increasingly important if and when
economic activity stalls.  Over the last five years fixed
staff and property costs have fallen from 56.7% to 51.8%
of revenue.

The Group continues to improve co-operation and co-
ordination between companies in order to add value to our
clients' businesses and our people's careers, an
objective which has been specifically built into short-
term incentive plans.  Particular emphasis and success
has been achieved in the areas of media investment
management, healthcare, privatisation, new technologies,
new markets, retailing, internal communications, hi-tech,
financial services and media and entertainment.
                                                 
The Group continues to concentrate on its objectives of
improving operating profits by 15-20% per annum;
improving operating margins by 1 margin point per annum
or more depending on revenue growth; improving staff cost
to revenue or gross margin ratios by 0.6 margin points
per annum or more depending on revenue growth; converting
20-33 1/3% of incremental revenue to profit and growing
revenue faster than industry averages and encouraging co-
operation between Group companies.

In addition to introducing greater flexibility into its
cost structure, the Group is competitively well
positioned to weather any economic uncertainty because of
its stronger financial position, its geographic spread,
its consistent new business record and its competitive
strength in information and consultancy, public relations
and public affairs, identity and branding, healthcare and
specialist communications - particularly as clients
decide to spend an increasing proportion of their
marketing budgets on 'below-the-line' activities.

The Group is in line to achieve its fourth margin plan
target of 14.0% in 2000.  Following the announcement of
the merger with Y&R, a fifth margin plan was announced to
increase operating margins to 15.0% in 2001 and 15.5% in
2002.  This would bring the Group's performance into line
with the best performing competition.  Consideration is
already being given to a more ambitious longer-term
margin plan beyond 2002.


For further information:

Sir Martin Sorrell  )
Paul Richardson     )    44-20-7408-2204
Feona McEwan        )    1-212-632-2301

www.wpp.com



This announcement has been filed at the Company
Announcements Office of the London Stock Exchange and is
being distributed to all owners of Ordinary shares and
American Depository Receipts.  Copies are available to
the public at the Company's registered office.

The following cautionary statement is included for safe
harbour purposes in connection with the Private
Securities Litigation Reform Act of 1995 introduced in
the United States of America.  This announcement may
contain forward-looking statements within the meaning of
the US federal securities laws.  These statements are
subject to risks and uncertainties that could cause
actual results to differ materially including adjustments
arising from the annual audit by management and the
Company's independent auditors.  For further information
on factors which could impact the Company and the
statements contained herein, please refer to public
filings by the Company with the Securities and Exchange
Commission.  The statements in this announcement should
be considered in light of these risks and uncertainties.

WPP and Y&R have filed a proxy statement/prospectus and
other relevant documents concerning the merger with the
U.S. SEC.  INVESTORS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY
OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION.  Investors will be
able to obtain the documents free of charge at the SEC's
web-site (www.sec.gov).  In addition, documents filed
with the SEC by WPP may be obtained free of charge by
contacting WPP c/o WPP Group USA, Inc., Worldwide Plaza,
309 West 49th Street, New York, NY 10019-7399, (212) 632-
2200.  Documents filed with the SEC by Y&R will be
available free of charge by contacting Y&R Inc., Legal
Department, 285 Madison Avenue, New York, NY 10017, (212)
210-3000.

                                                         
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